0 likes | 0 Views
Vedanta Limited, a global natural resources conglomerate, operating in critical minerals, energy and technology, always caught the attention due to its visionary business moves and transparent operations. In one of the recent developments, the company declared a second interim dividend of INR 16 per equity share on the face value of Re 1 per equity share for the FY 2025-26, amounting to INR 6,256 crore. This follows an earlier interim dividend of INR 7 per share in June. Together, Vedantau2019s shareholders will receive INR 23 in dividends this fiscal year.
E N D
VEDANTA DEMERGER – THE MOST APPROPRIATE WAY TO SEPARATE BUSINESSES INTO INDEPENDENT ENTITIES
Today’s global corporate landscape is quite uncertain, due to which companies often face challenges linked with managing diverse business verticals and diversified operations. To unlock the untapped potential and strategically tackle the challenges associated with managing diversified verticals under a single umbrella, companies often consider demerger as the most appropriate option to create more shareholder value. By separating distinct business units, demergers allow each entity to operate independently, with greater efficiency and focus.
What is a Demerger? In contrast to mergers, which combine separate entities into a single company, a demerger divides a company, enabling each new entity to pursue its strategic goals while focusing on specific business verticals. The concept of demergers has been defined under the Income Tax Act, 1961, and is primarily governed by the Companies Act, 2013. source url:- https://vedantaa.news.blog/blogs-vedanta-demerger-the-most-appropriate-way-to-separate-businesses-into-independent-entities/
How Demerger Process Carried Out? The process to initiate a demerger in India primarily includes the involvement of the National Company Law Tribunal (NCLT). Besides, in case of a listed entity, the business has to adhere to the requirements prescribed by the Securities Exchange Board of India (“SEBI”). The main steps of demerger are as follows:
FINAL WORDS Hopefully, this presentation is useful for all of you. Thank you again and have a nice dayIn recent times, the corporate landscape has seen a rapid restructuring in operations with more companies looking for ways to unlock value and streamline operations. Even the major industry player, Vedanta Limited, has announced its Vedanta demerger, attracting great interest from stakeholders.